Decision Notice
On , the Financial Conduct Authority issued a Decision Notice to Sqoan Financials Limited
1
NOTICE OF DECISION
ACTION
1.
For the reasons given below, the Authority has decided to cancel Sqoan Financials Limited’s
Part 4A permission. The cancellation takes effect on the date of this Notice of Decision.
2.
The effect of the cancellation is that Sqoan Financials Limited no longer has permission to carry
on any regulated activities.
DEFINITIONS
3.
The definitions below are used in this Notice of Decision (and in the Annex):
“the Act” means the Financial Services and Markets Act 2000;
“the Authority” means the Financial Conduct Authority;
Sqoan Financials Limited 21 July 2023
Notice of Decision
2
“Directory Persons Attestation” means the report which an SMCR firm (as defined in the
Handbook) is required to submit to the Authority in accordance under SUP 16.26;
“EG” means the Enforcement Guide;
“FDA” means the Firm Details Attestation which Authority-authorised firms are required to
submit to the Authority under SUP 16.10;
“FEES” means the Authority’s FEES Manual, part of the Handbook;
“FSCS” means the Financial Services Compensation Scheme;
“the general levy” means the levy a firm must pay to the Authority towards the costs of
operating the compulsory jurisdiction of the Financial Ombudsman Service;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“the IML levy” means the Illegal Money Lending levy;
“Part 4A permission” means permission to conduct regulated activities, granted by the
Authority under Part 4A of the Act;
“RAG” means regulated activity group as referred to in SUP;
“the Returns” means the Consumer Credit, Complaints, General Insurance Pricing Information
and Retail Mediation Activities returns relating to the periods from 1 January 2021 to 31 March
2023, which were due to be submitted on various dates between 28 February 2022 and 18
May 2023.
“SFGB Levy” means the Single Financial Guidance Body Levy;
“SFL” means Sqoan Financials Limited;
“SFL’s Part 4A permission” means the Part 4A permission granted by the Authority to SFL;
and
“SUP” means the Supervision Manual, part of the Handbook; and
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber).
FACTS AND MATTERS
4.
SFL was authorised by the Authority on 6 November 2015 and has Part 4A permission to
conduct the following regulated activities
i.
Advising on investments (except on Pensions Transfers and Pension Opt Outs);
ii.
Arranging (bringing about) deals in investments;
iii.
Making arrangements with a view to transactions in investments;
iv.
Advising on regulated mortgage contracts;
v.
Arranging (bringing about) regulated mortgage contracts;
vi.
Making arrangements with a view to regulated mortgage contracts;
vii.
Credit broking;
viii.
Debt counselling; and
Sqoan Financials Limited 21 July 2023
Notice of Decision
3
ix.
Advising on P2P agreements.
5.
SFL has failed to pay periodic fees and levies owed to the Authority as required under the
Handbook under the rules set out in FEES 4.2.1R, 4.3.1R, 5.7.1R, 6.7.1R, 6.7.3R, 7A.3.1R and
13.2.1R. In particular, SFL has failed to pay an invoice dated 21 September 2021 for periodic
regulatory fees and levies of £2,244.21 which had been due for payment by 20 December
2021.
6.
In addition, under SUP 16.3.13R(1), SUP 16.3.13R(4), SUP 16.12.4R and 16.12.28AR (and the
further rules specified therein) in Chapter 16 of SUP] , SFL is required to submit the Returns
to the Authority by the relevant due date. However, SFL has failed to submit the Returns to
the Authority. The Authority therefore considers that SFL has failed to provide information to
the Authority as is required by the Handbook, namely the information it is required to provide
in the Returns.
7.
Furthermore under SUP 16.10.4R, 16.10.4AR and 16.10.14AAR, SFL is required to submit the
FDA to the Authority by the relevant due date. However, SFL has failed to submit the FDA to
the Authority.
8.
Additionally under SUP 16.26.18R to 16.26.20R, SFL is required to submit the the Directory
Persons Attestation to the Authority within the relevant period. However, SFL has failed to
submit the Directory Persons Attestation to the Authority. The Authority therefore considers
that SFL has failed to provide information to the Authority as is required by the Handbook,
namely the information it is required to provide in the Returns, FDA and Directory Persons
Attestation.
9.
On 21 April 2023, the Authority gave SFL the Notice which stated that:
(a)
it appears to the Authority that SFL is carrying on no regulated activity to which its Part
4A permission relates; and
(b)
the Authority may take action to cancel SFL’s Part 4A permission unless it responds to
the Notice in the manner specified in the directions to the Notice.
10.
SFL failed to respond to the Notice.
11.
As a result of the matters specified above, on 26 June 2023, the Authority gave SFL the Further
Notice which stated that:
a) the Authority considered that SFL is carrying on no regulated activity to which its Part
4A permission relates; and
b) the Authority proposes to cancel SFL Part 4A permission on 21 July 2023 unless SFL
takes the steps specified in the directions to the Further Notice.
12.
SFL failed to take the steps specified in the Further Notice.
CANCELLATION OF PART 4A PERMISSION
13.
From the facts and matters described above, and having regard to paragraph 1(3) of Schedule
6A to the Act, the Authority considers that SFL is carrying on no regulated activity to which its
Part 4A permission relates. The Authority has therefore decided to cancel SFL’s Part 4A
permission. The cancellation of SFL Part 4A permission takes effect on the date of this Notice.
Sqoan Financials Limited 21 July 2023
Notice of Decision
14.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.
PROCEDURAL MATTERS
15.
This Notice of Decision is given to SFL under paragraph 3 of Schedule 6A to the Act (variation
or cancellation of Part 4A permission on initiative of FCA: additional power).
The following paragraphs are important.
Annulment of the Authority’s decision
16.
If SFL is aggrieved by the decision to cancel its Part 4A permission as set out in this Notice of
Decision, SFL may make an application for an annulment of the Authority’s decision under
paragraph 4 of Schedule 6A to the Act.
17.
SFL must submit a completed application for an annulment of the Authority’s decision to the
Authority by 20 July 2024 and in the manner specified by the Authority.
The Tribunal
18.
SFL does not have a right to refer the decision to give this Notice of Decision to the Tribunal.
Publicity
19.
The Authority intends to publish such information about the matter to which this Notice of
Decision relates as the Authority considers appropriate. The information may be published in
such manner as the Authority considers appropriate.
Authority Contact
20. For more information concerning this matter generally, SFL should contact Maciej Alexander
Bajko (direct line: 020 7066 1838).
Enforcement and Market Oversight Division
NOTICE OF DECISION
ACTION
1.
For the reasons given below, the Authority has decided to cancel Sqoan Financials Limited’s
Part 4A permission. The cancellation takes effect on the date of this Notice of Decision.
2.
The effect of the cancellation is that Sqoan Financials Limited no longer has permission to carry
on any regulated activities.
DEFINITIONS
3.
The definitions below are used in this Notice of Decision (and in the Annex):
“the Act” means the Financial Services and Markets Act 2000;
“the Authority” means the Financial Conduct Authority;
Sqoan Financials Limited 21 July 2023
Notice of Decision
2
“Directory Persons Attestation” means the report which an SMCR firm (as defined in the
Handbook) is required to submit to the Authority in accordance under SUP 16.26;
“EG” means the Enforcement Guide;
“FDA” means the Firm Details Attestation which Authority-authorised firms are required to
submit to the Authority under SUP 16.10;
“FEES” means the Authority’s FEES Manual, part of the Handbook;
“FSCS” means the Financial Services Compensation Scheme;
“the general levy” means the levy a firm must pay to the Authority towards the costs of
operating the compulsory jurisdiction of the Financial Ombudsman Service;
“the Handbook” means the Authority’s Handbook of rules and guidance;
“the IML levy” means the Illegal Money Lending levy;
“Part 4A permission” means permission to conduct regulated activities, granted by the
Authority under Part 4A of the Act;
“RAG” means regulated activity group as referred to in SUP;
“the Returns” means the Consumer Credit, Complaints, General Insurance Pricing Information
and Retail Mediation Activities returns relating to the periods from 1 January 2021 to 31 March
2023, which were due to be submitted on various dates between 28 February 2022 and 18
May 2023.
“SFGB Levy” means the Single Financial Guidance Body Levy;
“SFL” means Sqoan Financials Limited;
“SFL’s Part 4A permission” means the Part 4A permission granted by the Authority to SFL;
and
“SUP” means the Supervision Manual, part of the Handbook; and
“the Tribunal” means the Upper Tribunal (Tax and Chancery Chamber).
FACTS AND MATTERS
4.
SFL was authorised by the Authority on 6 November 2015 and has Part 4A permission to
conduct the following regulated activities
i.
Advising on investments (except on Pensions Transfers and Pension Opt Outs);
ii.
Arranging (bringing about) deals in investments;
iii.
Making arrangements with a view to transactions in investments;
iv.
Advising on regulated mortgage contracts;
v.
Arranging (bringing about) regulated mortgage contracts;
vi.
Making arrangements with a view to regulated mortgage contracts;
vii.
Credit broking;
viii.
Debt counselling; and
Sqoan Financials Limited 21 July 2023
Notice of Decision
3
ix.
Advising on P2P agreements.
5.
SFL has failed to pay periodic fees and levies owed to the Authority as required under the
Handbook under the rules set out in FEES 4.2.1R, 4.3.1R, 5.7.1R, 6.7.1R, 6.7.3R, 7A.3.1R and
13.2.1R. In particular, SFL has failed to pay an invoice dated 21 September 2021 for periodic
regulatory fees and levies of £2,244.21 which had been due for payment by 20 December
2021.
6.
In addition, under SUP 16.3.13R(1), SUP 16.3.13R(4), SUP 16.12.4R and 16.12.28AR (and the
further rules specified therein) in Chapter 16 of SUP] , SFL is required to submit the Returns
to the Authority by the relevant due date. However, SFL has failed to submit the Returns to
the Authority. The Authority therefore considers that SFL has failed to provide information to
the Authority as is required by the Handbook, namely the information it is required to provide
in the Returns.
7.
Furthermore under SUP 16.10.4R, 16.10.4AR and 16.10.14AAR, SFL is required to submit the
FDA to the Authority by the relevant due date. However, SFL has failed to submit the FDA to
the Authority.
8.
Additionally under SUP 16.26.18R to 16.26.20R, SFL is required to submit the the Directory
Persons Attestation to the Authority within the relevant period. However, SFL has failed to
submit the Directory Persons Attestation to the Authority. The Authority therefore considers
that SFL has failed to provide information to the Authority as is required by the Handbook,
namely the information it is required to provide in the Returns, FDA and Directory Persons
Attestation.
9.
On 21 April 2023, the Authority gave SFL the Notice which stated that:
(a)
it appears to the Authority that SFL is carrying on no regulated activity to which its Part
4A permission relates; and
(b)
the Authority may take action to cancel SFL’s Part 4A permission unless it responds to
the Notice in the manner specified in the directions to the Notice.
10.
SFL failed to respond to the Notice.
11.
As a result of the matters specified above, on 26 June 2023, the Authority gave SFL the Further
Notice which stated that:
a) the Authority considered that SFL is carrying on no regulated activity to which its Part
4A permission relates; and
b) the Authority proposes to cancel SFL Part 4A permission on 21 July 2023 unless SFL
takes the steps specified in the directions to the Further Notice.
12.
SFL failed to take the steps specified in the Further Notice.
CANCELLATION OF PART 4A PERMISSION
13.
From the facts and matters described above, and having regard to paragraph 1(3) of Schedule
6A to the Act, the Authority considers that SFL is carrying on no regulated activity to which its
Part 4A permission relates. The Authority has therefore decided to cancel SFL’s Part 4A
permission. The cancellation of SFL Part 4A permission takes effect on the date of this Notice.
Sqoan Financials Limited 21 July 2023
Notice of Decision
14.
The statutory and regulatory provisions relevant to this Notice of Decision are set out in the
Annexes.
PROCEDURAL MATTERS
15.
This Notice of Decision is given to SFL under paragraph 3 of Schedule 6A to the Act (variation
or cancellation of Part 4A permission on initiative of FCA: additional power).
The following paragraphs are important.
Annulment of the Authority’s decision
16.
If SFL is aggrieved by the decision to cancel its Part 4A permission as set out in this Notice of
Decision, SFL may make an application for an annulment of the Authority’s decision under
paragraph 4 of Schedule 6A to the Act.
17.
SFL must submit a completed application for an annulment of the Authority’s decision to the
Authority by 20 July 2024 and in the manner specified by the Authority.
The Tribunal
18.
SFL does not have a right to refer the decision to give this Notice of Decision to the Tribunal.
Publicity
19.
The Authority intends to publish such information about the matter to which this Notice of
Decision relates as the Authority considers appropriate. The information may be published in
such manner as the Authority considers appropriate.
Authority Contact
20. For more information concerning this matter generally, SFL should contact Maciej Alexander
Bajko (direct line: 020 7066 1838).
Enforcement and Market Oversight Division